Your Tax Dollars At Sea - Who Pays When Things Go Wrong on Cruises?
This week the United States Coast Guard rescued two cruise passengers - one ill young man from the NCL Gem cruise ship sailing off the coast of North Carolina and a second young woman from the Explorer cruise ship who was suffering from an appendicitis attack near Key West Florida.
When we report on these type of rescues, we sometimes hear from readers of Cruise Law News complaining that the cost of the medical evacuations should be borne by the sick passengers themselves.
We especially hear these complaints when a passenger inadvertently goes overboard. Was the passenger acting negligently or was he or she under the influence of alcohol (a major money
maker for the cruise lines). If so, many people protest loudly and angrily that the cruise passenger should bear the extra fuel expenses and other costs incurred by the cruise ship and the Coast Guard searching for the missing passenger.
Federal agencies are prohibited by law from seeking reimbursement of the costs associated with search and rescue of this type.
So who bears the expense when the cruise lines act irresponsibly and the cruise goes terribly wrong?
Consider the fire last year aboard the Carnival Splendor which caused the cruise ship to lose power off of the coast of Mexico. The Carnival ship was disabled due to the negligent design of the cruise ship itself which risked the lives of 4,500 passengers and crew. As we reported before, the U.S. Coast Guard blasted Carnival for its defective engines and poorly designed safety instructions which caused several thousands of passengers to find themselves helplessly adrift at sea without lighting, air conditioning or hot water on the high seas.
Carnival quickly considered legal claims against the companies which designed and manufactured the engines which failed. Carnival did not hesitate making a claim against these companies for the revenues lost while the Splendor sat in dry dock being repaired.
But who paid for the enormous costs associated with the U.S. Navy and U.S. Coast Guard responding to the emergency?
You will recall that the U.S. Navy sent an aircraft carrier, the U.S.S. Ronald Reagan, to the scene as the mostly U.S. passengers bobbed around on the high seas. The Navy utilized four aircraft and helicopters to assist the stricken Carnival ship. The Navy made twenty-four airlifts of food and provisions which its aircrew skilfully dropped onto the Carnival cruise ship to feed the passengers.
How much did this cost and who was paying for it?
I inquired around and the only knowledgeable source was the International Cruise Victims ("ICV") organization whose President, Ken Carver, had requested information from the U.S. Navy and the U.S. Coast Guard pursuant to a Freedom of Information Act ("FOIA") request.
The U.S. Navy timely responded to Mr. Carver's FOIA request. The Navy disclosed that it delivered 60 pallets, weighing over 37,000 pounds, of "bread, luncheon meat, pop tarts, canned crab, water and paper plates."
Considering the cost of positioning an aircraft carrier, dispatching multiple aircraft and helicopters, and delivering tons of food and water to be dropped onto the cruise ship, the Navy stated that it spent $1,884,376.75 responding to the fire aboard the Carnival Splendor cruise ship.
This figure does not include the costs incurred by the U.S. Coast Guard in responding to the crisis and towing the cruise ship back to San Diego. Unfortunately, the Coast Guard has not yet provided any information in response to Mr. Carver's FOIA request dating back to earlier this year.
The Coast Guard's costs were undoubtedly another $2,000,000 or so in personnel and fuel costs for their vessels and helicopters.
There is a certain irony that cruise lines, which structure their businesses to avoid U.S. taxes and U.S. safety regulations, are dependent on the generosity of our Federal agencies in responding to emergencies when they get themselves into a jam.
Cruise lines incorporate in foreign countries like Liberia and Panama and register their cruise ships in foreign
countries like the Bahamas in order to avoid U.S. laws and all U.S. income taxes. The cruise industry collects over $35,000,000,000 (billion) a year in income from mostly income-tax-paying-Americans, yet it avoids U.S. corporate income tax by incorporating itself and registering its ship abroad.
But when the cruise ships catch on fire and are adrift on the high seas, cruise lines like Carnival are the first to make a distress call to the United States and ask for favors from the U.S. Navy and U.S. Coast Guard.
When cruise passengers were thinking of suing Carnival last year for the inconvenience caused by the cruise fire aboard the Splendor, I was the first one to say don't do it. Many of the major news networks and newspapers picked up on the my don't-sue-Carnival message, like the Wall Street Journal, USA Today, Fox News, ABA Journal, Gadling, and the U.K's Mirror.
At the end of the day, it was not the cruise passengers who filed suit. It was Carnival who made legal claims against the companies which designed and manufactured its engines. Carnival made millions in the process.
Did Carnival, the only one suing, repay the U.S. government?
Not a penny.
So who paid for all of the millions of dollars in emergency services expended by our U.S. Navy and Coast Guard arising from the negligence of the tax-avoiding, foreign flagged and incorporated cruise line which stranded thousands of tax-paying Americans on the high seas?
You, the American taxpayers.
For additional information about the Carnival Splendor fire and cruise ship fires in general, consider reading:
Carnival Splendor CO2 Firefighting System: "A Recipe for Failure"
"Coast Guard Blasts Carnival Splendor for Fire Negligence"
Ten Years of Cruise Ship Fires - Has the Cruise Industry Learned Anything?
Photo credit: bottom photo / U.S.S. Ronald Reagan - providencefox.com

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For other articles about crime in Mexico:
cruise line also claims that "neither passengers nor crew were adversely affected, and neither was the operation of the ship."
In the last week there have been a number of articles about certain cruise lines enacting new policies to restrict smoking on their cruise ships.
Cruise passengers Richard Liffridge (photo above left) and his wife Vicky were asleep peacefully in their cabin. The plastic partitions between the balconies below them were easily combustible. The Princess cruise ship had no fire suppression systems on the balconies of the cruise ship. The fire quickly spread across hundreds of other cabin balconies and then erupted into the cruise ship cabins.
rincess acted quickly to replace the highly combustible balcony wall partitions and furniture on the balconies, and to install fire detectors and fire suppression systems which had never been installed on any cruise ship before.
Unfortunately, many cruise lines, including Carnival (which is the parent company of Princess Cruises) and NCL have not replaced the easily combustible balcony partitions and installed fire suppression systems on the balconies.
Several news sources are reporting that an oil tank exploded at the port in Gibraltar today..jpg)
about it in the newspapers."
their honeymoon...' and he said he was thinking... 'It's gonna be so hard for her when they bring the lifeboats down and she stays with me'. I was thinking, 'It's gonna be so hard for him when I get on that lifeboat. But it all worked out.'
its sprinkler system."
First impressions are everything. The first Mexican cruise line has already earned a dubious reputation.
system on the Carnival cruise ship. Here is the article unedited:
tons (GRT) Italian built Concordia-class cruise ship Carnival Splendor, and have released two
electrical damage, which rendered the vessel dead in the water 55 miles off Punta San Jacinto on the northern Baja California coast, and 110 miles southwest of San Diego, requiring it to be towed back into port. The U.S. Navy had to airlift 70,000 pounds critical food and water, including cans of Spam, to it by Sikorsky MH-60 Seahawk helicopters and Gruman C-2A Greyhound logistics aircraft from the San Diego based aircraft carrier USS Ronald Reagan (CVN-76).
investigate this incident, and instead turned the matter over to the Panama Maritime Authority, the country in which the vessel is registered. The U.S. Coast Guard requested to join the investigation, and Panama consented. The NTSB provided two experts to assist the Coast Guard, following its request for technical assistance. Information on the progress of the investigation will eventually be released by the Panama Maritime Authority..png)
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manufacturers and designers of the Splendor's engine system.
executives pledged to return to the island - "
Line's Eurodam cruise ship can attend lectures and talks on espionage, spies, intelligence, and counterterrorism by speakers who are "intelligence experts, leaders, officers, operatives, analysts, authors and historians, many of whom served in the US Intelligence Community." Well, a "National Security Reporter" for the Toronto Star, Michelle Shephard, sailed on the cruise this week.
Now that the disabled Carnival Splendor is back in a U.S. port, some lawyers are advertising that the passengers should consider filing a lawsuit. One cruise site, offering "cruise insider expert advice," is shilling for a Miami lawyer: "Now is the time to join the November 7, 2010 passengers in a joint effort for compensation. Contact us if you were on this cruise."
Carnival has handled this fire knowing that its response will be scrutinized in the court of public opinion. Its CEO traveled from Miami to San Diego and held a press conference where he apologized and offered a full refund, reimbursement of travel expenses and a free future cruise.
ships had suffered previous fires as well. In 2006, a large fire broke out on the Star Princess operated by a subsidiary of Carnival, Princess Cruises, in the middle of the night resulting in a death and multiple injuries. Last year, a fire in the engine room disabled the Royal Princess operated by Princess Cruises, which had to be towed back to an Egyptian port.
Spam, Pop Tarts and canned crabmeat flown in by helicopter. Friends and families of stranded passengers are concerned because communication with their loved ones has been severely limited. It’s expected that the Splendor will arrive in port in San Diego late Thursday. Critics say there are serious safety lapses throughout the cruise industry and this accident was waiting to happen. What’s being done to protect passengers?"
be. Left powerless by an engine fire shortly after embarking on a seven-day cruise to the Mexican Riviera, the Splendor is expected to be towed into port in San Diego late Thursday. If the ship cannot make sufficient speed under tow, it is possible it will be taken to Ensenada, company officials said.
The Carnival Splendor experienced its problems relatively close to several major ports, making rescue possible in only a few days.
as quickly as possible," said Cahill of Carnival Cruise Lines. Carnival Corp., which also includes such lines as Princess Cruises and Holland America and has 98 ships worldwide, reported revenues of $13.2 billion in 2009.
The
A rescue services spokesman says the passengers on the Deutschland cruise ship are being evacuated.

One of the dangers of cruising is the cruise ship catching on fire. Most families who go on a cruise don't like to think about it.
During the ensuing investigation, the captain of the Tropicale testified that he was concerned that the engine room would explode. He kept information about the raging fire from passengers because he worried they might panic and jump overboard, according to the St. Pete Times article "
was paying attention to the cruise line. Everyone was listening to Pastor Surratt tweeting away on the cruise ship in the Mediterranean. Fortunately no passengers were injured.
"Siblings Take on Cruise Line after Father’s Death"
“He was at the peak of his life,” Henry said.
While the cruise line made sure the Star Princess’ passengers got a rebate for the incomplete cruise and a discount on their next excursion, the Liffridge family had to pay to have their father’s remains returned to the United States, Hudson said.
“No amount of money will replace our loss,” she added. “The main thing for us is that another family does not have to go through this like we did.”
risks of a cruise fire which killed her father:
Jim Walker practices admiralty and maritime personal injury law. He has been involved in maritime litigation since 1983. Based in

